Overview of the real estate market in Tbilisi

Overview of the real estate market in Tbilisi

Modification date: 2018-04-10 / View count: 4804
Property prices in Tbilisi are very cheap. You can find apartments from 20 to 30 m2 completely renovated for less than 30 000 euros and in attractive districts. For those looking to buy real estate abroad, and who have been faced with prices outside their budget, Tbilisi is an ideal buying destination.

A constant increase of tourists number

The number of tourists visiting Tbilisi and Georgia continues to grow from year to year. In the first quarter of 2018, the number of tourists visiting the capital of Georgia increased by more than 30% compared to the same period in 2017. The Georgian government is doing everything in its power to further stimulate growth in the coming years. The tourism industry is growing rapidly, new airlines are being created every week. Currently, most tourists come from the Middle East, Ukraine, Russia and Central Asia. The number of direct flights to Western Europe has remained limited, but since the beginning of 2018, it is another story. With the addition of many new routes to Western Europe (Paris, Londres, Berlin, Amsterdam, Barcelone,  Dortmunt, Bologne,...), Tbilisi can expect an increasing number of European tourists who will spend a lot of money in the coming years.

A very high occupancy rate in the hotel sector

The number of tourists visiting Tbilisi is increasing much faster than the number of hotel rooms currently on the market. The occupancy rate is over 80% in this sector as well as for properties marketed on air'b'nb, with a peak between April and October, the busiest months. This rate is very high. In fact, most hotels are full all year round.

A lack of competition

Although there are currently a large number of apartments and studios for rent in Tbilisi - both for short and long-term rentals - most properties are decorated and furnished with the Georgian taste. There is a lack of modern house staging (not to say totally) to attract more demanding Western European customers with high purchasing power.

Rental returns....

The strong demand and low supply create a favourable environment for an excellent return on investment. The affordable prices of real estate in Tbilisi, allow you to expect have high rental yields. For a property, located in the right place and marketed in the right way, the rental yield is 12% on average in Tbilisi, or even much more with our investment method, up to 18%.

By investing in real estate in Tbilisi today, you will be part of the first wave of real estate investors to take advantage of the unique opportunities in the capital city of Georgia. However, these opportunities will not remain a well-kept secret. Already, many investors see, as we do, the potential of the Georgian real estate market, prices are going up, and already increase considerably. That's why entering this market now is a very good time.

No barriers for foreign buyers

In some countries, it is difficult for foreigners to buy real estate. But not in Georgia. Foreign buyers have the possibility to purchase goods in full ownership under the same conditions as Georgian buyers. The registration system of a property is incredibly fast. A property can be registered in your name within a few hours. The cost of registering a property in Georgia is only about two hundred euros.
  • An ultra-soft property tax. It is progressive and cannot exceed 1% of the value of the property. For all these tax issues, go to our "Taxation" page
  • Liberal visa regime. Wherever you come from, from Europe or elsewhere, it is unlikely that you will have much difficulty entering Georgia because the country is one of the most open in the world. And once you're here, for most passport holders, you can stay here as long as you want - up to a year without a visa.
  • Possibility of permanent residence. Looking for a permanent permit of residence? Then Tbilisi is an ideal choice. The cost of living here is the lowest in Europe. The climate and local hospitality are two other reasons why you should consider visiting Georgia. Anyone investing 100,000 euros or more has the opportunity to receive temporary or permanent residency in Georgia - receiving all the same benefits as Georgian citizens.
Article written by : BGG Press Office
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